What This Document Is
This is a model award fee plan developed by the University of Southern California’s Center for Software Engineering. It’s designed as a contractual instrument for evaluating and rewarding contractors and subcontractors involved in large, software-intensive development projects. The plan outlines a framework for assessing performance and determining appropriate fee allocations based on pre-defined criteria. It’s intended for use by organizations procuring systems with significant software components, offering a customizable approach to incentivize desired outcomes.
Why This Document Matters
This resource is particularly valuable for program managers, contracting officers, and fee determining officials involved in software development contracts. It’s useful during the initial stages of contract negotiation and throughout the project lifecycle for performance evaluation. Anyone seeking a structured method for linking contractor performance to financial incentives will find this plan a helpful starting point. It’s especially relevant when aiming to promote the adoption of modern software engineering practices.
Common Limitations or Challenges
This document is a *model* plan and requires tailoring to specific project needs. It is not a ready-to-use template and will need adaptation based on the unique characteristics of each contract and supplier. It doesn’t provide specific performance ratings or award fee amounts; rather, it establishes the *process* and *criteria* for making those determinations. It also doesn’t cover all possible contractual scenarios or legal considerations.
What This Document Provides
* A framework for establishing critical success factors in software development contracts.
* Candidate evaluation scales and weighting suggestions for assessing contractor/subcontractor performance.
* Proposed operating procedures for the subcontractor evaluation and award fee process.
* Definitions of key roles and responsibilities (e.g., Buyer, Supplier, Lead System Integrator).
* A structure for documenting the award fee organization and allocation by evaluation periods.
* Guidance on procedures for plan changes and contract termination related to award fees.
